IPTV strategy pays for Portugal Telecom

November 17, 2009

IPTV operation Meo helped Portugal Telecom maintain its fixed line business in the first nine months of 2009. ARPU increased by 2.1% year-on-year to 30.1 as retail revenues grew in three consecutive quarters.

Meo contributed 79,000 new pay-TV subscribers in the quarter, 193,000 so far in 2009, to reach 505,000 households. The offering comprises of over 110,000 linear TV channels and 2,000 VOD titles, through arrangements with five of the Hollywood majors. Over half of the installed base has used the VOD service on a paid for basis, an increase of 2.1 percentage points on the second quarter, and consuming an average of 2.6 movies per month.

The importance of triple play to Portugal Telecom is underpinned by the fact that pay-TV customers already represent 19% of traffic generating lines and 62.2% of the ADSL customer base. The loss of voice lines is also apparently slowing, 14,000 leaving the company, as opposed to 32,000 net disconnections in Q3 2008.

Recent launches include the HD version of Fox channel, in only its third launch worldwide, Fox Life will be added on January 1.